Lachlan Star Limited · ASX:LSA

Lachlan Star — Investor Presentation (February 2012)

30 slides from Lachlan Star's investor presentation, Mar 1, 2012

  1. Slide 1: Unhedged Gold Producer

    28 February 2012 For personal use only Unhedged Gold Producer World Class Deposits Major ExploraDon PotenDal ASX: LSA www.lachlanstar.com.au TSX: LSA

  2. Slide 2: Disclaimer

    Disclaimer For personal use only This Document is not a Prospectus nor an Offer to Subscribe for Shares. Lachlan Star and its subsidiaries (“LSA”) makes no representa:on or warranty (express or implied) as to the accuracy , reliability or completeness of this document. LSA and its respec:ve directors

  3. Slide 3: Corporate Overview

    Corporate Overview For personal use only Listed on ASX and TSX under stock code “LSA” 100% interest in a major gold project (CMD Gold Mine) in a poliDcally stable country (Chile) Unhedged gold producDon operaDng at 57,500 ounces per annum run rate ProducDon forecast to increase to 75,000 ounces per

  4. Slide 4: Experienced Management Team

    Experienced Management Team For personal use only Board of Directors Chairman Mick McMullen Geologist with over 19 years experience in idenDfying, financing, developing, and mining operaDons in Africa, Australia, Europe, Asia and South America. Has been an ExecuDve Director of publicly listed mining

  5. Slide 5: Lachlan Star Capital Structure

    Lachlan Star Capital Structure For personal use only 24 Feb 2012 Shares 75.37m Warrants +Options 16.18m (avg strike price of A$1.21) Share price A$1.35 Market Cap (undiluted) A$102 million Enterprise Value (EV) A$89 million EV/ ounce of gold US$33/oz

  6. Slide 6: Lachlan Star Peer Comparison

    Lachlan Star Peer Comparison For personal use only LACHLAN STAR ARGONAUT RIO ALTO TIMMINS Mine Name CMD El Castillo La Arena San Francisco Location Chile Mexico Peru Mexico Market capitalisaDon (US$mm) $109 $912 $807 $428 Cash (US$mm) $15 $35 $30 $10 Debt (US$mm) $4 $6 $50 $18 Enterprise value (US$m

  7. Slide 7: CMD Mineral Resource Growth

    CMD Mineral Resource Growth For personal use only Indicated and Inferred Ounces of Gold in Mineral Resources 3.5 3.0 2.5 Million Ounces of Gold 2.0 1.5 1.0 0.5 -­‐ Dec-­‐10 Jan-­‐11 Feb-­‐11 Mar-­‐11 Apr-­‐11 Jan-­‐12 Feb-­‐12 Inferred Ounces Indicated Ounces

  8. Slide 8: CMD Mineral Resource Growth

    CMD Mineral Resource Growth For personal use only Ø February 2012 mineral resources have increased in both scale and confidence levels, based on >32,000 m of drilling in 2011 Ø Total contained ounces of gold up by 81% Ø Run of Mine (ROM) Dump leaching trials indicate the potenDal to leach the lowe

  9. Slide 9: CMD Processing

    CMD Processing For personal use only Ø Current processing is three stage crushing Ø Dump leach and two stage crush trials highly successful on low grade material (0.15 to 0.30 g/t Au) Ø Will underpin step change in gold producDon (increase) and waste:ore raDo (decrease) Ø Recovery of 60 % aqer 6

  10. Slide 10: CMD Operations

    CMD OperaDons For personal use only Ø Established mine with long history in highly prospecDve locaDon Ø CMD has produced in excess of 860,000 ounces of gold since 1995 Ø 8Mtpa crushing, stacking & eluDon plant currently operaDng at 3.9 Mtpa (up from 1.5Mtpa in Dec 2010) – presently mine constrain

  11. Slide 11: CMD Location

    For personal use only CMD Location

  12. Slide 12: CMD Quarterly Highlights - Costs

    CMD Quarterly Highlights -­‐ Costs For personal use only Total Cost/t Ore $30.00 $25.00 $20.00 $15.00 $10.00 $5.00 $-­‐ Mar-­‐11 Jun-­‐11 Sep-­‐11 Dec-­‐11 Ø Total costs (including waste stripping) gradually reduced in 2011 Ø Costs will reduce significantly once ROM dump leaching starts and pre str

  13. Slide 13: CMD Quarterly Highlights – Mining

    CMD Quarterly Highlights – Mining For personal use only 5,000 8.00 4,500 7.00 4,000 6.00 Material mined (kt) 3,500 Strip ratio (W:O) 5.00 3,000 2,500 4.00 2,000 3.00 1,500 2.00 1,000 1.00 500 - - Mar Qrt June Qrt Sept Qrt Dec Qrt Ore (kt) Waste (kt) Waste to Ore Ratio Ø Ore tonnes increased, waste:

  14. Slide 14: CMD Quarterly Highlights – Mining

    CMD Quarterly Highlights – Mining For personal use only 1,000,000 0.70 0.65 900,000 0.60 800,000 0.55 700,000 0.50 0.45 Ave. Au grade (g/t) 600,000 Ore mined (t) 0.40 500,000 0.35 0.30 400,000 0.25 300,000 0.20 200,000 0.15 0.10 100,000 0.05 -­‐ -­‐ Mar Qrt June Qrt Sept Qrt Dec Qrt Las Loas (t) Chu

  15. Slide 15: 2012 CMD Mine Plan

    2012 CMD Mine Plan For personal use only Ø Work underway on updated mine plan Ø 2012 mineral resources should beger reflect extent of mineralisaDon (2/3 of ore mined in 2011 was from outside the 2011 mineral resource) Ø Focus on mining the bulk tonnage, low waste:ore raDo Manto deposits Ø Combina

  16. Slide 16: CMD Mineral Resources

    CMD Mineral Resources For personal use only

  17. Slide 17: CMD Exploration – Tres Perlas Deposit

    CMD ExploraDon – Tres Perlas Deposit For personal use only Ø Tres Perlas was the main ore source for the CMD Gold Mine during the iniDal phase of the mine Ø Feb 2012 Tres Perlas mineral resource contains 2.3 m ounces of gold Ø SDll open and contains large areas with no drilling internally with po

  18. Slide 18: CMD Exploration – Tres Perlas Deposit

    CMD Exploration – Tres Perlas Deposit For personal use only

  19. Slide 19: CMD Exploration – Tres Perlas Deposit

    CMD Exploration – Tres Perlas Deposit For personal use only

  20. Slide 20: CMD Exploration – Tres Perlas Deposit

    CMD Exploration – Tres Perlas Deposit For personal use only

  21. Slide 21: CMD Exploration – Tres Perlas Deposit

    CMD Exploration – Tres Perlas Deposit For personal use only

  22. Slide 22: CMD Exploration – Toro Deposit

    CMD Exploration – Toro Deposit For personal use only

  23. Slide 23: CMD Copper Potential

    CMD Copper PotenDal For personal use only Ø Located immediately adjacent to Teck Andacollo mine Ø Teck deposit hosts resources of 535 Mt grading 0.37 % Cu and 0.12 g/t Au Ø Teck have recently commissioned their 20Mtpa concentrator and announced a study into doubling producDon Ø Limited copper ex

  24. Slide 24: Company Strategy

    Company Strategy For personal use only Ø Increase ore tonnages stacked onto the pad, both crushed and ROM dump leach Ø ConDnue to progress mining to low waste:ore raDo pits Ø OpDmise mine fleet to drive unit rate reducDon Ø Aggressively explore the CMD Gold Mine tenements to expand the known mine

  25. Slide 25: CMD Mineral Resources

    CMD Mineral Resources For personal use only CMD Gold Mine Mineral Resources (Feb 2012) Indicated Inferred Tonnes Grade Ounces Tonnes Grade Ounces Deposit (Mt) (Au) (kozs) (Mt) (Au) (kozs) Las Loas (April 2011) 2.9 0.8 73 1.5 0.8 37 Toro (Feb 2012) 17.5 0.6 348 11.6 0.5 135 Tres Perlas (Feb 2012) 108

  26. Slide 26: CMD Mineral Resources

    CMD Mineral Resources For personal use only CMD Gold Mine Mineral Resources (Feb 2012) Indicated Inferred Tonnes Grade Ounces Tonnes Grade Ounces Deposit (Mt) (Au) (kozs) (Mt) (Au) (kozs) Las Loas (April 2011) 2.9 0.8 73 1.5 0.8 37 Toro (Feb 2012) 16.2 0.7 338 5.5 0.5 94 Tres Perlas (Feb 2012) 54.6

  27. Slide 27: Lachlan Star's Other Assets

    Lachlan Star’s Other Assets For personal use only Bushranger (100% reducing to 49%, New South Wales) Ø Scoping Study indicates economic project – refer below for pre capital (A$98m) results Ø Newmont Farming in to earn 51% over two years Bushranger Pit Optimisation Results Net Operating Mineral Wa

  28. Slide 28: Lachlan Star's Other Assets

    Lachlan Star’s Other Assets For personal use only Bushranger (100% reducing to 49%, New South Wales) Bushranger Mineral Resources (October 2011) above 0.2 % Cu Indicated Inferred Deposit Grade Cu Grade Cu Tonnes (Mt) Tonnes (Mt) (Cu %) Tonnes (Cu %) Tonnes Bushranger 24.9 0.4 94,620 27.6 0.3 91,080

  29. Slide 29: Competent Persons Statement

    Competent Persons Statement For personal use only Competent Persons Statement The informa:on in the news release that relates to the Mineral Resources of Tres Perlas, Chisperos, Las Loas and Toro is based on informa:on compiled by David Slater, who is a Chartered Professional Member of The Australas

  30. Slide 30: For Further Information

    Unhedged gold For personal use only production Major World class exploration deposits potential For Further Information Lachlan Star Limited Lower Ground Floor 57 Havelock Street West Perth WA 6005 Tel: +61 8 9481 0051 Fax: +61 8 9481 0052 mick.mcmullen@lachlanstar.com.au info@lachlanstar.com.au www

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